Bharti Walmart Joint Venture and Dissolution
Strategic Management – II Project Report
Submitted to Prof. Arindam Das
On
9th March, 2015
By
Section D – Group 9
Narendran Kiran IPM2011054 Nishant Gupta 2014PGP234
Nishant Prateek Minz IPM2011059
Rahul Shrivastava 2014PGP283
Saragade Priyanka Dilip 2014PGP329
Suneet Singh Badla 2014PGP384
Vijay Arur 2014PGP420
Declaration of Originality
We, the students of Group 9, Section D, declare that this report is our own work and has not been submitted in any form to any institution for assessment or other purpose. Information derived from published and unpublished work of others has been acknowledged in the
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is the world's largest retailer with $466 billion in sales for the 2012 fiscal year. Walmart Stores Inc. includes Walmart Supercenters, discount stores, Neighborhood Markets and SAM'S Club warehouses. Walmart employs more than 2.1 million associates from under 60 different banners in the United States, Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the UK. In 2007, Walmart became No. 1 on the Fortune 500 List and in 2003 and 2004 Walmart was named 'Most Admired Company in America' by Fortune Magazine.
Walmart grew from quiet beginnings in Sam M. Walton's Ben Franklin variety store in Newport, Arkansas in 1945 and brother James L. Walton's similar store in Versailles, Missouri in 1946. In 1962, Sam Walton started Walmart's first discount store, but faced stiff competition from Kmart and Target, opening only another 14 stores by the close of the decade. Expansion became rapid in the 70s, however, to 276 stores in 11 states, when a public offering provided the necessary capital infusion. By the 80s Walmart was one of the most successful retailers in America. Annual sales grew from $1 billion in 1980 to $26 billion by 1989. The company acquired 122 Woolco stores from Woolworth, Canada in 1994, to become, three years later, the largest volume discount retailer in Canada and Mexico. By 2002, acquisitions in Germany, Brazil and South Korea had enabled Walmart to become the world's
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Scale of operations
The strong market position is the main strength of Wal-Mart with more than $400 billion revenue and almost 11,000 stores worldwide and consumer’s trust that differentiate Walmart from its competitors. Walmart can also achieve higher profit because of its huge size and it has a strong buyer power on suppliers to trim down the costs as compared to competitors
Competence in information systems
The one reason of Walmart’s success is its Supply Chain and Logistics management. The company is saving significant cost by using its information system properly that managed inventory level, orders, sales and other information. Any information can be easily accessible at each store at any
Wal-Mart, a "Big-Box Retailer" employs more than 2.1 million associates worldwide and has two-thousand seven-hundred stores in the United States with many more in Argentina, Brazil, Canada, Central America, Chile, China, Germany, Japan, Korea, India, Mexico, Puerto Rico, and the United Kingdom, making Wal-Mart the largest retailer in the world. "Wal-Mart accounts for upward of 30 percent of U.S. sales, and plans to more than double its sales within the next five years" (Lynn 29-36). Why is Wal-Mart so successful, and is Wal-Mart actually bad for America?
In 1962, Wal-Mart opened their first store in Rogers, Arkansas. In 1970, Wal-Mart's first distribution center and home office in Bentonville, Ark. open and Wal-Mart went public on the New York Stock Exchange. Just nine years from that, Wal-Mart's annual sales exceeded one billion dollars. In 1988, Wal-Mart super centers opened across the country. In a merely three years from that, Wal-Mart opened their own store in Mexico City, Mexico; making Wal-Mart an international corporation. Not even sixty years has past, and yet, Wal-Mart is over-powering our country.
The first Walmart was opened in Rogers, Arkansas in the year 1962 by a 44-year-old man by the name of Sam Walton. When he first envisioned Walmart, Walton believed that a successful business could be built around offering lower prices and great service. Despite his retail rivals laughing at his supposedly unsustainable business model, the company became hugely successful, and its success exceeded even Walton's expectations. The company went public in 1970, and the proceeds financed a steady expansion of the business. Today, Walmart is the largest retailer in the world, as it has 8,500 stores spread across 15 countries and annual revenues of $400 billion dollars. Moreover, Walmart is the
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. Wal-Mart is committed to growing by improving the standard of living for our customers throughout the world. Wal-Mart earns the trust of its customers every day by providing a broad assortment of quality merchandise and services at every day low prices while fostering a culture that rewards and embraces mutual respect, integrity, and diversity. In 2006 the net sales were $312.4 billion versus in 2005 were $285 billion.
Supply chain innovations should ensure on-shelf availability at retail outlets, improving collaboration between vendors and retailers, translating supply chain costs to product pricing, lean inventory and real time replenishment. Wal-Mart should ensure that process differentiation to determine the right method of moving products with varying demand characteristics (Akehurst, C., & Alexander, N. (1995)
Walmart is one of the most successful franchises of all time and continues to take fire from multiple angles, whether it’s about the costing of jobs, the wages, the health insurance, the small business destruction, or the environmental impact, but can always back itself up by negating those claims with facts that proves that it is beneficial to the community.
Wal-Mart’s competitive environment is quite unique. Although Wal-Mart’s primary competition comes from general merchandise retailers, warehouse clubs and supermarket retailers also present competitive pressure. The discount retail industry is substantial in size and is constantly experiencing growth and change. The top competitors compete both nationally and internationally. There is extensive competition on pricing, location, store size, layout and environment, merchandise mix, technology and innovation, and overall image. The market is definitely characterized by economies of scale. Top retailers vertically integrate many functions, such as purchasing, manufacturing, advertising, and shipping. Large scale functions such as these give the top competitors a significant cost advantage over small-scale competition.
Walmart a name known globally they are a true empire. They are known as one of the largest company in the world. Sam Walton founded Walmart opening the first store in 1952 and Arkansas since then in has grown. According to Snyder Walmart is located in over 27 counties they have over a 11,000 stores and over two million employees. Walmart stands by the mission statement “We save people money so they can live better.” Walmart is known for is super low prices, and they compete with anyone who tries to enter their market. Walmart has a very formal and bureaucratic structure. There is a very clear hierarchy and commands come from the top and flows to the bottom. Although Walmart is so successful they have received lots of backlash due to some
Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further expansion across the state, the chain was incorporated as Wal-Mart Stores, Inc. Three years later, Wal-Mart was approved and listed on the New York Stock Exchange (NYSE).
WALMART store inclusive is the largest retailer and the largest company in terms of revenue.
Wal-Mart is the world's largest retailer and second largest corporation. It is the largest private employer in the United States and Mexico. Wal-Mart is the largest grocery retailer in the United States, with an estimated 20% of the retail grocery and consumables business, and the largest toy seller in the United States, with an estimated 45% of the retail toy business, having surpassed Toys"R" Us in the late 1990s. Wal-Mart has 1,929 stores which as of 2005 sales figures totaled about $155,477,000,000 in sales. Wal-Marts revenue as of 2006 was an estimated $315,654 billion USD, net income $11.231billion USD, and employs more than 1.8 million employees.1
It was founded by Sam Walton in 1962, which is integrated in October 31, 1969 and reciprocated on the New York Stock Exchange in 1972. Walmart is also known as the largest grocery retailer in the United States. It has over 11,000 stores in total 27 countries under the other names. For example in India, it operates as best price, in United Kingdom as Asda and in Japan as Seiyu. Depending on the results of investments in outside North America, its action in the South America, china and United Kingdom are more profitable but on the other hand South Korea and Germany are less profitable.
To start, their vision statement is: “To be the best retailer in the hearts and minds of consumers and employees.” Their aim to be the top retailer is certainly true. According to the National Retail Federation, Walmart is the #1 retailer in the United States. Other numbers back up their position. They have 11,535 retail unites in about 28 countries. 2.2 million associates around the world serve over 260 million customers weekly. For the fiscal year of 2015, Walmart reported increased net sales of 1.9% and a revenue of $485.7 billion. Additionally, Walmart’s mission statement is: “Saving money so they can live better.” Their statement also parallels with their company slogan: “Save money. Live
When it comes to buying your everyday necessities majority of people always look for the best deals. Walmart is a global phenomenon that has integrated into society with it's well-known, for their everyday low prices. Throughout the decades Walmart has become a driving force in the economy as well as the household. WIth endless supplies and endless supplies. Walmart has proven to be able to be successful in many aspects. When compared to other businesses Walmart surpasses any competition by being consumer-driven along with many things.
The first Wal-Mart was opened in Rogers, Arkansas, in 1962. By 1969 it was incorporated into Wal-Mart Stores, Inc., and in 1972 went public on the New York Stock Exchange. The company grew steadily across the United States, and by 1990 was the nation's largest retailer. In 1991 and 1994, Wal-Mart moved into Mexico and Canada respectively. By 1997 it was incorporated into the Dow Jones Industrial Average. As of 2005, Wal-Mart has stores in the United Kingdom, and Puerto Rico, and brings in revenue of close to 300 billion dollars a year. In 2006, Wal-Mart invaded the China and India's markets. During the last two decades, Wal-Mart has been able to take advantage of the rise of information technology and the explosion of the global economy to change the balance of power in the business world (Wikipedia, 2006). Today Wal-Mart continues to grow and their success is not only from their sound strategic management planning but also from its implementation of those strategic plans. In other words operational planning has been an important key to their success.